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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The following table summarizes the financial results from discontinued operations of PHINIA.
(in millions) | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Net sales | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,723 |
Cost of sales | — |  |  | — |  |  | — |  |  | 1,362 |
Gross profit | — |  |  | — |  |  | — |  |  | 361 |
Selling, general and administrative expenses | — |  |  | — |  |  | — |  |  | 173 |
Restructuring expense | — |  |  | — |  |  | — |  |  | 7 |
Other operating expense, net | 4 |  |  | 52 |  |  | 28 |  |  | 117 |
Operating (loss) income | (4) |  |  | (52) |  |  | (28) |  |  | 64 |
Equity in affiliates’ earnings, net of tax | — |  |  | — |  |  | — |  |  | (5) |
(Loss) earnings from discontinued operations before income taxes | (4) |  |  | (52) |  |  | (28) |  |  | 69 |
Provision (benefit) for income taxes | 4 |  |  | (15) |  |  | (1) |  |  | 81 |
Net loss from discontinued operations attributable to PHINIA | $ | (8) |  |  | $ | (37) |  |  | $ | (27) |  |  | $ | (12) |
In connection with the Spin-Off, the Company entered into a transition services agreement through which the Company and PHINIA provided certain services to each other following the Spin-Off. These services were related to information technology, human resources, finance, facilities, procurement, sales, intellectual property and engineering. The Company completed the performance under the transition services agreement during the three months ended September 30, 2024. The combined impact of these services is reported in results of continuing operations in the Condensed Consolidated Financial Statements. During the nine months ended September 30, 2024, the Company provided services at a cost of $7 million to PHINIA and PHINIA provided services at a cost of $2 million to the Company. The Company incurred $4 million and $28 million of costs relating to the Spin-Off during the three and nine months ended September 30, 2024, respectively. The Company incurred $52 million and $117 million of costs relating to the Spin-Off during the three and nine months ended September 30, 2023, respectively. These costs are reflected within Net loss from discontinued operations in the Company’s Condensed Consolidated Statements of Operations. Spin-Off costs are primarily comprised of professional fees and costs to separate certain operational activities, including costs to separate information technology systems which the Company expects to decrease and ultimately conclude by the end of 2024.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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